Lee Lighting produces two models of floor lamps: Standard and Smart. The two differ primarily in the quality of the materials and theadditional electronics required for the Smart lamp. At budget, Standard sells for $18 per unit and has a variable cost to produce of $12.The Smart lamp sells for a budgeted $64 per lamp and has a budgeted variable cost to produce of $46. Lee expects to sell 40 percentSmart lamps, and budgeted sales at a total of 98,000 lamps of both models for May. Lee actually sold 94,000 lamps, of which 39,500were Smart lamps. Smart lamp actual revenues represented 40 percent of May total actual revenue.Required:a. Compute the sales activity variance for Lee for May.b. Compute the sales mix and sales quantity variances for May.Complete this question by entering your answers in the tabs below.Required ARequired BCompute the sales activity variance for Lee for May.Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" forunfavorable. If there is no effect, do not select either option.Activity varianceU

Step 2: Calculate Actual Sales for Each Lamp Type (using actual units sold and given percentage for…

Answered: Lee Lighting produces two models of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 5EA: Shelby Industries has a capacity to produce 45.000 oak shelves per year and is currently selling...

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